The Journal Entry to Record the Receipt of a Stock

question 62

Multiple Choice

The journal entry to record the receipt of a stock dividend arising from an available- for- sale investment held by a company includes:

• A)a debit to Cash and a credit to Dividend Revenue.
• B)a debit to Cash and a credit to Unrealized Gain on Investments.
• C)no journal entry. Only a memorandum entry is required.
• D)a debit to Unrealized Gain on Investment and a credit to Dividend Revenue.

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Definitions:

Not-for-Profit Organizations

Entities that operate for purposes other than to make a profit, typically focusing on charitable, educational, or social objectives.

Public Accountants

are certified professionals who provide accounting services, including auditing, tax advice, and financial planning, to the public.

GAAP Standard

Generally Accepted Accounting Principles, the set of accounting standards used in the United States to ensure accuracy and consistency in financial reporting.

Relevance

The degree to which something is related or useful to what is happening or being talked about.